Market failure and government intervention - Definitions

Market failure:

Productive efficiency:

Economic efficiency:

Inefficiency:

Free market mechanism:

Information failure:

Asymmetric information:

Externality:

Third party:

Private costs:

Private benefits:

External costs:

External benefits:

Social costs:

Social benefits:

Negative externality:

Positive externality:

Merit goods:

Demerit goods:

Public goods:

Non-excludability:

Free rider:

Non-rivalry:

Quasi-public goods:

Direct tax:

Indirect tax:

Polluter pays principle:

Subsidy:

Tradable permit: